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Importance of Goal setting in Organizations

All business organizations should make it a point to have specific goals as a part of their business plan. These goals can be determined based on the company’s profitability, market shares, and the overall growth. Goals can also be set for internal staff purposes in order to boost employee morale. Companies should always follow the SMART (Specific, measurable, attainable, relevant and timely) module before deciding on the final goals. Both managers and employees can establish clear career objectives with the help of organizational goals.

Take a look at few reasons as to why goal setting plays an important role in organizations

Enhances motivation

Organizational goals provide employees with a strong reason to strive for in their day-to-day activities. For instance, rather than simply aiming for general productivity, staff members can work to enhance the company’s profitability by 10 percent within the year-end. When there is a specific standard to strike, employees are persuaded to deliver their best in the quality of work they deliver. When goals are attached to other external awards, such as rewards and recognition, it will motivate them further to strive for excellence.

Channelizes focus

Organizational goals are beneficial for both the employees as well as the employers. This is because with goal setting employees exactly know what they need to aim for in the upcoming quarter or the next financial year. Likewise, the management can also focus on the major projects first and then divide the projects among the employees accordingly.

Group cohesion is improved

In order to accomplish most of the business goals, it is important that all the employees of different levels work closely together. When all employees work together as a team, group collaboration and cohesion improves. Project managers can further reiterate this by giving group awards when an organization meets its specific goals.

SMART tool

Organizations should set goals that are smart, measurable, attainable, relevant and timely. With SMART goals, employees can gauge their progress on a timely basis and can have a fair idea as to what is still pending from them in order to achieve their targeted goal.

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